General
greenmail
What does greenmail mean?
A corporate raider tactic: accumulate a threatening block of a company's shares, rattle the board with the prospect of a hostile takeover, then agree to go away in exchange for the company buying the stake back at a fat premium. The target's other shareholders get diluted while the raider walks off with a quick payday. Heyday was the 1980s; later largely killed off by tax and securities reforms.
"Sir James Goldsmith made a small fortune in greenmail before the rules tightened up."
Origin
Portmanteau of 'greenback' (US dollar) and 'blackmail', coined in the 1980s during the wave of US hostile takeover battles.
Frequently asked questions
What does greenmail mean?
Greenmail is buying a big stake in a company, threatening a takeover, then selling the shares back to the target at a premium.
How do you use greenmail in a sentence?
"The raider walked away with a fortune through greenmail."
Where does the word greenmail come from?
It's a blend of "greenback" (US dollars) and "blackmail," reflecting the coercive buy-back tactic.
Study it as flashcards or scroll it in Vocabulary Flow — saved to your collection.
